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Suppose the real risk-free rate is 3.40% and the future rate of inflation is expected to be constant at 6.60% What rate of return would

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Suppose the real risk-free rate is 3.40% and the future rate of inflation is expected to be constant at 6.60% What rate of return would you expect on a 5-year Treasury security, assuming the pure expectations theory is valid? Disregard cross-product terms, i.c., if averaging is required, use the arithmetic average a. 4.68% 6.830 10.00 Od 3.40 O 5.00

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